India has asserted that there will be no dilution in the Liability Law while negotiating any civil nuclear agreement with the US. The response came after media reports suggested that an agreement may be signed with the US which might not be in tune with the Indian law.

External Affairs Minister Salman Khurshid told the media in New Delhi yesterday that while India needs energy, it will get it at its own terms and conditions.

Minister of State in the Prime Minister's Office V Narayanasamy said the law passed by Parliament will prevail and the government will go by it.

BJP President Rajnath Singh demanded that Prime Minister Manmohan Singh clarify reports suggesting that the Centre is preparing to dilute provisions of the Nuclear Liability Bill in the interest of American companies.

Our correspondent reports, the US sees the Civil Liability for Nuclear Disaster Act as a hurdle in selling nuclear reactors to India. The law allows Nuclear Power Corporation of India to seek compensation from suppliers of reactors in case of a nuclear accident.